Tips for Converting First Time Donors

In the words of fundraising giant Mal Warwick, “a first time contributor is just a qualified prospect.”  Knowing this, what is your organization doing to convert the highest percentage of first time contributors into donors?  Here are some perspectives about this offered in Mal Warwick’s book, Revolution in the Mailbox: Your Guide to Successful Direct Mail Fundraising.

Based on Warwick’s 40+ years of nonprofit fundraising experience, somewhere between 1/3 and 1/2 of first time donors will never donate to your organization again.  Although this statistic is sobering and somewhat discouraging, if you want to grow your donor database, you need to invest your available resources wisely to convert these supporters into long-term donors.

Start with a Sincere “Thank You:” The first place to start in the conversion process is with a prompt “thank you.”  The gold standard in promptness is to send a “thank you” within 24 hours of receipt of your gift.  If at all practical, a hand-written or hand-signed note is best.  Donors feel most appreciated if the CEO or Executive Director signs the “thank you.”   It may seem like common sense, but a “thank you” should not ask for another gift or donation; to be accepted as a sincere “thank you,” the sole purpose of the communication need to be to express gratitude.  Finally, if at all possible, the “thank you” should cite the amount of the gift given and provide a receipt for tax purposes.

Welcome First Time Donors to Your Organization: Warwick encourages all charitable organizations to send a welcome package as the next step.  Too many organizations make the mistake of assuming that new donors have a comprehensive understanding of the priorities and history of their organization.  The goal of a welcome package is to list the key accomplishments of your organization; this includes both historical accomplishments as well as recent successes.  Additionally, the purpose of a welcome package is to engage or involve your first time donor, and with this in mind, Warwick encourages including a questionnaire or something that will somehow encourage donor participation or interaction.

Look at the Amount of the Donation:  Research indicates that new donors of $15 or less are difficult to convert.  On the other end of the spectrum, donors of $50 or more typically have the highest conversion rate.  In fact, Warwick’s data suggests that there is a high correlation between the level of the donor’s initial gift and the likelihood that that donor will still actively support you more than a year later.  If your organization has a limited marketing budget, you can use this to determine who receives additional follow up and who doesn’t. 

How Many Solicitations is Too Many?  Warwick recommends that you contact fist time donors every month or two for a period of one year or 18 months.  Research indicates that few donors are aware how frequently they are solicited by mail.  When surveyed, donors almost always underestimate the amount of solicitations that they receive over a specified period of time.  The really good news is that once people give two gifts to your organization, they are much more likely to contribute yet again and become a recurrent donor.  For a recurrent donor, renewal rates increase on a scale of about 5-10% per year for each year that they have donated; simply stated these donors continue to be more loyal over time.  Leverage this information for your organization so that you can maximize the conversion rate of your first time donors and grow your base of loyal supporters.

Comments

[Lori L. Jacobwith]

All good thoughts on how to convert a first time donor. A few other tips that I have found helpful over the years:
#1- Have a board member make a follow-up thank you call as a part of the acknowledgment process. This does two things: one has the donor feel great and they are often surprised that a board member took the time to call them simply to say thank you. And secondly it has the board member feel more connected to your mission and to why they give their financial and time support in the first place.
#2 - Invite a new donor to attend something to get them more deeply connected to your organization. And if you invite them, always suggest they bring someone. It's more likely that they'll show up if they bring someone with them.

#3 - Penelope Burk, fundraising futurist & author,(Donor Centered Fundraising)says that donors make the decision for making a 2nd gift in the void of time between the first gift and the 2nd ask - NOT when you ask them. By then it's too late. So, best practice is: take time to make that first experience meaningful.